New UK EV registrations reach all-time high in March 2026; Chinese brands' market share rises above 10%
New data from the Society of Motor Manufacturers and Traders (SMMT) has shown that March 2026 recorded the most new UK electric vehicle registrations in a month ever. Meanwhile, Automotive Logistics' analysis of the SMMT dataset has found that Chinese-owned OEMs have increased their market share over the past year to account for more than 10% of monthly and annual new vehicle registrations in the UK.
The latest SMMT data on new vehicle registration in the UK provided an optimistic outlook, especially for the electric vehicle segment. March is usually a particularly busy month for new vehicle registrations, following the release of new registration plates, but March 2026 saw exceptional numbers of new vehicles registered.
Last month, 380,627 new cars were registered in total, marking a year-on-year increase of 6.6% and the highest levels since 2019.
EV volumes rise but market share below ZEV mandate target
Registrations of petrol and diesel vehicles declined from March 2025 to March 2026 – a drop of 6.1% for petrol cars and 11.4% for diesel cars. However, hybrid electric vehicle (HEV) registrations increased by 7.3% while plug-in electric hybrid vehicle (PHEV) registration grew 46.9% and battery electric vehicle (BEV) registration rose 24.2%.
"The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy," commented SMMT chief executive Mike Hawes. "However, the headlines belie the costs incurred and the challenges involved. Much of March’s performance will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence."
He continued: "Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net zero ambitions."
March 2026 was the best month on record for registrations of new electrified cars (BEVs, PHEVs and HEVs), with 196,059 vehicles registered. Of these most (86,120) were BEVs, followed by HEVs (60,2680) then PHEVs (49,671).
However, despite the data indicating increased demand for electric vehicles in the UK and a record high for EV registration, the market share held by zero-emission vehicles (ZEVs) is now even further from the targets outlined in the UK's ZEV mandate than last year. The mandate set a target of 33% ZEVs by 2026, but in the first quarter of the year BEVs – the only category of ZEV measured by SMMT data – have represented just 22.4% of the UK market.
The market share held by BEVs increased year over year from 20.7% in 2025, but the rise in the annual target from 28% in 2025 to 33% in 2026 means that despite this, the UK appears to be further behind its goal than last year. The SMMT has stated that "despite rising EV volumes, conditions have diverged sharply from those assumed when the mandate was set", pointing towards inflated battery, energy and public charging costs as examples of shifting market conditions.
For example, the organisation noted that battery costs at the beginning of 2026 were more than 30% higher than expected, while industrial energy prices sat roughly 80% above 2021 levels, and public charging costs can be as much as 140% higher than they were five years ago.
The SMMT acknowledged government efforts to support the automotive industry in its efforts to transition towards electric against amid growing pressures, such as incentivising EV adoption through the extension of the Electric Car Grant, but once again called for a rapid review of the energy transition.
While the EU revised its ICE vehicle ban at the start of the year in response to industry pressure, the UK has not yet formally reviewed its ZEV mandate and its mid-point review is not scheduled until early 2027.
Certainty on the future of vehicle electrification will be essential to effective planning surrounding the long-term production and logistics strategies of OEMs. Any changes to consumer demand for EVs or regulatory mandates will send ripples throughout the supply chain. Demand signals from consumers and changes to regulation will directly affect investment decisions, whether in production, aftersales or battery supply chain infrastructure.
Additionally, demand for EVs can have a direct impact on packaging. EV-specific components are typically heavier than ICE vehicle components, so – as Andy Winebloom, senior manager at Toyota Motor Europe, identified at ALSC Europe – trailers can be constrained by weight rather than by volume. "So we want the lightest possible packaging for that solution," Winebloom said.
With so much uncertainty regarding the future of electrification, as well as wider operational uncertainty, Emrah Özgen, chief operating officer at Tri-Wall EMEA, emphasised the need for flexibility in packaging and open communication between OEMs and packaging suppliers.
"You have to be as flexible as possible," he said. "It's not only about EV volumes, it's the general structure of the industry and the world... You have to be able to provide your customers lower quantities sometimes and really huge quantities other times."
Light commercial vehicle registrations decline
SMMT data shows a steady decline in UK van registrations throughout 2025, continuing into 2026. March 2026 was the weakest March for new light commercial vehicle (LCV) registrations since 2023 with less than 50,000 new LCVs registered.
These "disappointing" figures come amid challenging economic and business conditions including high costs, policy changes and weakened business confidence.
"A weak March is deeply concerning given this number plate change month often sets the tone for the year," said Hawes. "Moreover, with fleet renewal now having contracted in 14 of the past 16 months, it reflects poorly on overall business confidence."
He added: "A thriving market is essential not just to economic growth but to decarbonisation, and it is increasingly alarming to see BEV demand waning when it must accelerate to reach ever-tougher mandated levels. With the transition already falling behind schedule, a holistic review of the transition is urgently needed."
Figure 1: Growth of Chinese brands' UK market share
| Timeframe | 2026 | 2025 | YoY change | Growth rate |
|---|---|---|---|---|
| April | 14.12% | 7.56% | +6.56pp | 86.8% |
| Year-to-date | 12.94% | 7.01% | +5.93pp | 84.6% |
UK market share of BYD, Changan, Chery, GWM, Jaecoo, MG, Omoda and Xpeng according to SMMT data
The growing influence of Chinese OEMs in the UK market
Another noticeable trend in the latest SMMT vehicle registration data is the increase in registrations of vehicles from Chinese-owned OEMs over the past year.
As Figure 1 shows, Chinese brands represented 11.12% of new vehicle registrations in the first quarter of 2026 – compared with 6.41% in Q1 2025.
Of these brands, SAIC-owned MG had the greatest market share in Q1 2026, representing 3.88% of new vehicle registrations in the UK. However, this represents a decrease in market share year over year, with MG having had a market share of 4.24% in Q1 2025.
On the other hand, this past year has seen Jaecoo (a Chery-owned brand launched in January 2025) see significant growth in market, rising from as little as 0.56% in Q1 2025 to 3.08% in Q1 2026.
The Jaecoo 7 was identified by the SMMT as the model with the most UK vehicle registrations in March (10,064) and with the second-most registrations so far in 2026 (15,569). Since its launch in February 2025, 41,952 Jaecoo 7 cars have been sold in the UK.
In addition, BYD has seen tremendous growth in its share of the UK market over the past 12 months. Representing just 1.6% of new vehicle registrations in Q1 2025, its share grew more than double to 3.47% in Q1 2026. A total of 21,337 BYD vehicles were registered in the first quarter of the year.
“We’re naturally delighted to have achieved such impressive UK car sales in March and the overall quarter,” commented Bono Ge, country manager of BYD UK. “Building on the growth which we’ve already had in this country since we arrived three years ago, our cars, with their strong value-for-money and appealing style and technology continue to really strike a chord with both private and fleet buyers up and down the country."
Ge added: "As a result of the fluctuating prices at the pumps currently, we’re also seeing plenty of interest from British car buyers interested to learn more about our innovative electric, as well as plug-in hybrid, technologies."
Another brand that has seen growth in the UK market over the past year– albeit with a lower overall market share than MG and BYD – is Chery-owned Omoda, which saw its share of new vehicle registrations leap from 0.55% in Q1 2025 to 1.47% in Q1 2026.
“In less than two years, we have moved from market entry to meaningful scale in one of the most sophisticated automotive landscapes," said Gary Lan, CEO of Omoda and Jaecoo UK. "This performance underlines not only the strong demand we are seeing today, but also the robustness and scalability of our long-term strategy, as we continue to expand the OMODA and JAECOO footprint across the UK.”
According to data from the China Association of Automobile Manufacturers (CAAM), the UK ranked fourth worldwide as a destination for Chinese-made new vehicle exports in 2025. The number of new vehicles exported from China to the UK in 2025 totalled 335,551 units, representing an increase of 140,000 units on the previous year.
Of the 335,551 new vehicles taken into the UK from China last year, the majority (231,000) were new energy vehicles, indicative of a significant year on year increase (119,000 units in 2024).
As of 2024, Europe is now a net importer when it comes to automotive trade, but according to forecasts from S&P Global Mobility, Chinese OEMs will shift from export-focused strategies towards localised production in Europe over the next decade.
"Chinese OEMs are going to implement localisation strategies," said Tatiana Hristov, director of EMEA light vehicles sales forecast at S&P Global Mobility at ALSC Europe 2026. "Some of them already have research and development here in Europe... They will focus on not only bringing their cars to Europe, but also developing cars in Europe for Europe, focusing on local demand from specific European customers."
After SMMT data in January this year showed UK vehicle production hit the lowest levels since the 1950s, Hawes shared his hopes for the UK to attract investment in full production from Chinese OEMs, but stated that high energy costs in the UK will remain a barrier to attracting investment and action must be taken to reduce energy costs in order to ensure the UK remains an attractive proposition for foreign OEMs.
